Amazon FBA Profit Calculator
How the Amazon FBA Profit Calculator Works
Success on Amazon hinges on understanding your "net" numbers, not just your gross sales. Our Amazon FBA Profit Calculator helps you break down the complex fee structure associated with Fulfillment by Amazon (FBA).
Key Metrics Explained:
- Cost of Goods (COGS): The total price paid to your manufacturer per unit.
- Referral Fee: Amazon's "commission" for selling on their platform, typically 15% for most categories.
- FBA Fulfillment Fee: The cost for Amazon to pick, pack, and ship your product to the customer. This depends on weight and dimensions.
- Monthly Storage: Fees charged for keeping your inventory in Amazon's fulfillment centers.
Example Calculation
Imagine you sell a Yoga Mat for $40.00. Your COGS is $10.00 and it costs $1.00 to ship it to Amazon's warehouse. Amazon charges a 15% referral fee ($6.00) and an FBA fulfillment fee of $7.00. You also spend roughly $3.00 on PPC advertising per unit.
Total Costs = $10 (COGS) + $1 (Shipping) + $6 (Referral) + $7 (FBA Fee) + $3 (Ads) = $27.00.
Net Profit = $40 – $27 = $13.00.
Profit Margin = 32.5%.
Optimizing Your FBA Profits
To increase your margins, focus on reducing your COGS through bulk ordering or renegotiating with suppliers. Additionally, monitor your packaging dimensions; even a small reduction in size can drop your product into a lower FBA fulfillment fee tier, significantly boosting your bottom line.